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Thursday, January 16, 2014

House Sales Hit Six Year Peak

Research from the Royal Institute of Chartered Surveyors (RICS) shows that house sales have hit a six-year peak, and are at their highest since March 2008.

RICS go on to warn that the imbalance between housing supply and demand could lead to a property market bubble.

Peter Bolton-King director at RICS, is quoted by the Telegraph:
Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market.

On the face of it, this seems like good news but unless we see a marked increase in the number of homes coming up for sale we could well be looking at a price rises becoming unsustainable in some areas.”
Given the government's help to buy scheme, and the fact that 2015 is an election year, we can expect house prices to rise in order to promote a "feel good" factor. However, as I have noted many times before, rising house prices are not an indication of a real increase in personal wealth if one intends to move to a similar house.

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